House price discounts
How much are sellers reducing their asking prices by? How quickly are they reducing prices? What are their motivations for cutting prices? Which areas are seeing the largest number of price reductions?
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Buyers are getting significant discounts now, as sellers look to offload their properties. We are currently seeing sales agreed at up to 10% off the asking price. Although this may appear a good deal, it might be the sellers who are quids in. House prices are likely to fall much further as the effects of higher rates hit those coming off fixed interest rate mortgages. This will depress the market, and in 12 months time we could be seeing discounts of up to 25% off current asking prices.
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Sellers and buyers are both in the same boat. With nerves jangling about the potential of a property crash, coupled with interest rate uncertainty, discounts are flying. Sellers are keen to offload quickly and let's face it, still cashing in on good gains over the years, whilst buyers are feeling like it is bargain central.
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Seller confidence is low, there's no doubt about it. There's an urgency to sell as they can't meet rising mortgage payments. Borrowers are looking down the barrel of rising mortgage payments and they can’t find a further £500, £600, £700 plus a month to cover the mortgage. They are selling up, or at least trying to, so that they can downsize or even move to an area with cheaper house prices.
Speed is of the essence when it comes to securing a mortgage too. We are speaking with lenders, on behalf of clients whose house sales are dragging and putting their mortgage offers in danger. Luckily, we have great relationships with lenders and so negotiating terms has never been more important. In fact, such is the volatility of the market that according to Quick Move Now, a quarter of all house sales that fell through in Q2 this year was because the buyer was unable to get a mortgage, or because their mortgage product was withdrawn and replaced with a more expensive alternative.
Speed is of the essence when it comes to securing a mortgage too. We are speaking with lenders, on behalf of clients whose house sales are dragging and putting their mortgage offers in danger. Luckily, we have great relationships with lenders and so negotiating terms has never been more important. In fact, such is the volatility of the market that according to Quick Move Now, a quarter of all house sales that fell through in Q2 this year was because the buyer was unable to get a mortgage, or because their mortgage product was withdrawn and replaced with a more expensive alternative.